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Start-up Complexity and the Thickness of Regional Input Markets

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  • Dirk Christian Dohse
  • Andrea Vaona

Abstract

Although there is a large and rapidly growing literature on the determinants of regional variation in new firm formation, relatively little is known about the interrelation between the characteristics of start-up firms and urban structure. It is only recently that scholars of urban economics have suggested a theoretical link between the thickness of regional input markets and the complexity of feasible start-ups. The current paper classifies start-ups in different industry groups according to their complexity and analyzes the impact of regional input market thickness on the frequency of start-ups with different degrees of complexity. We find that thicker input markets do indeed foster more complex start-ups, but that some inputs are more important than others

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1842.

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Length: 29 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:kie:kieliw:1842

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Keywords: Entrepreneurship; Start-up complexity; Thick markets; Regional analysis;

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